LEGAL ALERT: Tax measures in attention of COVID-19

On Thursday, March 19, the Chilean Government announced a series of measures aimed at protecting the income and jobs of workers, including tax measures aimed at supporting the continuity of small and medium-sized business during the COVID-19 health emergency, that will allow a financial relief and we highlight below, with the validity announced by the SII:

1. Suspension of monthly provisional payments (PPM) of corporate income tax for the next 3 months. Validity: PPMs to be paid in April, May and June 2020.

2. Postponement of VAT payment for the next 3 months, making it possible to pay them in 6 monthly installments at zero real interest rate for Pymes, and 12 monthly installments in the same conditions for all companies with annual sales of less than UF 350,000 (today USD 11.749.341). Validity: Postponement for VAT to be paid in April, May and June 2020. Payment of VAT in installments from July 2020.

3. Anticipation of the income tax refund that corresponds to PyMes (Small en medium business with sales up to UF 75,000 per year, today USD 2.517.716): PyMes companies will receive their refund in April 21, as long as their tax returns are filed no later than April 10. Validity: During Tax Return April 2020.

4. Postponement until July 2020 of the payment of income tax for PyMes. It should be borne in mind that the tax declaration period has not been modified and it is still next april . Validity: During Tax Return April 2020, to be paid in July.

5. Postponement of the payment of contributions (land tax) for April for companies with sales of less than 350,000 UF (today USD 11.749.341) and for people with properties with a tax assessment of less than CLP 133.000.000, (today USD 156.283), individually considered. The deferred contribution will be paid in three installments, along with the following three contribution installments, with a real interest rate of 0%. Validity: In April 2020.

6. Transitory reduction of stamp and stamp tax to 0% for all credit operations during the next 6 months. Validity: From April 2020.

7. Relief measures for the treatment of tax debts with the General Treasury of the Republic focused on companies with annual sales of less than UF 350,000 and people with lower incomes. This initiative aims to grant payment facilities through special agreements with Treasury and forgive, in whole or in part, interests and fines. Validity: From April 2020.

8. All the expenses of the companies associated with facing the health contingency will be accepted as a tax expense. Validity: Immediate.

9. Greater flexibility will be granted in the terms to present sworn statements associated with this year’s tax return. Validity: Immediate.

“El presente Boletín no constituye asesoría legal y el estudio Guerrero Olivos no será responsable por actos u omisiones de terceros basados en la información contenida en él”.

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